Key takeaways:

• Retail stocks were among the major movers as investors dial down rate hike expectations 

Lower than expected inflation figures provided encouragement to the market this week, especially rate-sensitive stocks like financials and consumer discretionary names. 

Which shares excelled?

For the second week running, Collins Foods (ASX: CKF) finds itself among the best performing stocks. It appears that investors who were positioning themselves to enter the stock before it delivered its results were vindicated, with the quick service restaurant earnings sparking a massive rally.

For the 12 months ended 30 April, Collins Foods reported a 14.2% increase in revenue from continuing operations to $1.35 billion. The highlight of the results was same-store sales growth across its KFC division, which not only grew 5.8% across the period, but has started the new financial year on even stronger footing, up 8.8% since the start of May. 

Also backing up its success was luxury retailer Cettire (ASX: CTT), which extended its monthly gains to more than 40%. Whereas other consumer discretionary names have witnessed a slowdown, Cettire has found itself benefitting from accelerating growth. 

During April, Cettire sales revenue skyrocketed by 160%, suggesting its customers are not shying away from spending big despite the economic headwinds. Management indicated that momentum is expected to continue through to the end of the fiscal year, which is likely contributing to investor interest at this time.

On the outer for several months, shares in Magellan Financial Group (ASX: MFG) have recently turned a corner of sorts, albeit it remains to be seen whether the rally lasts. This week saw activist investor Sandon Capital put forward an alternative plan for the company. 

That plan would see management abandon the notion of rebuilding funds under management to $100 billion and instead return at least $300 million to shareholders. Investors appear to be listening to the proposal, which follows Sandon involvement with activist campaigns at a host of other businesses.

Jewellery retailer Lovisa (ASX: LOV) received a shot in the arm this week following a positive report from investment bank UBS. While the broker analysts lowered their price target for the stock to $23 per share, they retained their buy rating for Lovisa, which is currently trading below $20 per share. Attributing their view to the company low price-points and store expansion plans, UBS anticipates the retailer could hold up better than its peers. Bell Potter has an even higher price target for the stock of $30.50 per share.On Wednesday Lendlease Group (ASX: LLC) announced it was selected as the preferred development partner for the largest urban renewal project undertaken by the City of Melbourne. The project includes three buildings and $1.7 billion capital expenditure intended to transform the southern side of the Queen Victoria Market. Subject to planning approval, construction is forecast to run between early 2024 and 2028.Also flying higher this week, shareholders in Star Entertainment Group (ASX: SGR), Polynovo (ASX: PNV), Tuas (ASX: TUA), and Mader Group (ASX: MAD) will be pleased with what they've seen.

Which shares dragged on the market?

Shares in Weebit Nano (ASX: WBT) were rocked this week amid a series of events at the company, including a brief suspension of trading. At one stage the ASX suspended trading in WBT amid a governance issue that related to an insufficient number of Australian directors on its Board following the resignation of an incumbent director. 

Meanwhile, the semiconductor business also informed the market that its ReRAM IP is now fully qualified in SkyWater Technology S130 process, but the market overlooked that development as the ASX grilled the company on its governance practices.

Dairy manufacturer Bega Cheese (ASX: BGA) had a target on its back this week following news the company could face a non-cash impairment to the tune of $180 million to $280 million. That potential impact was sparked by higher dairy prices impacting the company bulk dairy ingredients. If that wasn't concerning enough for investors, the business also indicated that EBITDA for FY23 is tipped to fall within the lower range of its prior guidance for $160 million to $190 million.Trading lower this week is New Hope Corporation (ASX: NHC), which is nursing a hangover after analysts at Macquarie turned their backs on the stock. The investment bank downgraded its recommendation for the stock to underperform status. Macquarie also cut its price target for the stock to $4.50 per share, citing lower thermal coal prices in the near-term.Other names heading in reverse over recent trading sessions were Leo Lithium (ASX: LLL), US buy-now pay-later operator Sezzle (ASX: SZL), Lynas Rare Earths (ASX: LYC), and shipbuilder Austal (ASX: ASB).

We'll be back next week with another Weekly ASX Trading Wrap Up - until then, have a great week!